2021 State Unemployment Wage Base

Lb428 2019 added language to the nebraska employment security law in sections 48 648 and 48 649 to 48 649 04 that specifically increases the taxable wage base from 9 000 to 24 000 for unemployment insurance ui tax category 20 employers.

2021 state unemployment wage base. The taxable wage base will continue to increase as follows. A wage base limit is a per employee cap on the earnings that are taxable. Futa requires that each state s taxable wage base must at least equal the futa taxable wage base of 7 000 per employee and most states have wage bases that exceed the required amount.

2021 state wage bases updated 11 05 20 2020 state wage bases 2019 state wage bases 2018 state wage bases. For each year thereafter computed as 16 of the state s average annual wage. The federal unemployment tax act futa requires that each state s taxable wage base must at least equal the futa wage base of 7 000 per employee although most states wage bases exceed the required amount.

Payroll greater than 500 000. Currently washington is the state with the highest taxable wage base at 52 700 rates can only be understood in tandem with wage bases. Taxable wage bases 2018 2021 state unemployment insurance taxes are based on a percentage of the taxable wages an employer pays.

Maximum employee elective deferral. Taxable wage base. Understand annual wage base limits.

Employee catch up contribution if age 50 or older by year end 6 500 00. Following the federal unemployment tax act futa scheme state unemployment contributions taxes are determined by applying a certain percentage to the taxable wages paid by the employer. A 10 percent tax on a 7 000 wage base raises 700 while the same rate on a 49 800 wage base generates 4 980.

In this article we ll help you understand 2021 and 2020 wage bases and limits and how to update them for.